Beating a lower priced competitor is something all contractors struggle with and it is a problem that will never go away. There will always be a lowball competitor lying in the weeds waiting to steal your work.

The way to beat a lower priced competitor is to help your prospect realize your services better meet his needs. This is referred to as "selling." You've probably heard of it.

Most home owners and novice developers do not have the construction experience necessary to make a fully informed buying decision. They just haven't been burned enough times to realize that contractors come in all shapes and sizes and many will rob them blind if given half a chance.

When you're selling to your prospect you need to help them fully grasp the vast array of problems they could run into. Help them sort through the possibilities, separate the problems that are minor annoyances from those that are unacceptable outcomes. Help them get in touch with their feelings about the construction experience. Help them understand what they care about.

Find out what they care about. Find out what their priorities are.

Help them quantify the value of meeting those priorities. Help them understand that to receive the type of service they value costs money. Nothing in life is free. No low-ball contractor is going to provide the quality of service the prospect desires. Expecting one to is unwise.